Ferrier Hodgson Partners Garry Trevor, Andrew Love and Darren Weaver announced today
that they have reached a settlement with Ernst & Young and the Shareholders that will
result in $125m being payable to Sons of Gwalia Limited – subject only to creditor approval
at a meeting to be held on 23 September 2009.
Mr Trevor said: “This settlement together with the previous settlement of $53 million, made
with the directors and their insurers, will add $178 million to the asset pool which will allow
for a significant dividend to be paid by December 2009 and will assist in bringing this long-
running administration to a close.”
“The decision that the settlement was in the best interests of creditors was made in
consultation with our legal team and the Creditors Committee and after consideration of a
range of legal and commercial issues.”
A report to creditors that recommends creditors of Sons of Gwalia approve the terms of the
settlement is to be posted to creditors on 8 September 2009. Notices of meetings will be
provided on the same day by advertisements in the West Australian and Australian
newspapers.
Should creditors resolve to approve the terms of the settlement, the Administrators confirm
that they will be in a position to declare and pay a dividend by the end of 2009.
Ferrier Hodgson will not be commenting beyond this statement